DJs anchors Highpoint expansion

David Jones is to open a store in Highpoint Shopping Centre, in Melbourne’s Maribyrnong, anchoring a $300 million retail wing to be developed over the next two years.

The retailer has entered into a 20-year lease agreement with
GPT Group
to open a full-line 14,000 square metre store in a new fashion wing which will have about 100 specialty outlets.

Construction will begin next month and the store is expected to open in early 2013, with forecast sales ultimately of up to $60 million.

Highpoint is owned by Highpoint Property Group, run by the Besen family, GPT Wholesale Shopping Centre Fund and GPT Group.

“The development represents a greatly improved Highpoint for customers and the western region of Melbourne," GPT chief executive
Michael Cameron
said. The company is also looking to “greatly improve" the fresh food offering and the Woolworths supermarket.

In addition, 1000 new car spaces will be created, taking the total to 7000. Traffic flow and shopping centre access will also improve, with work on a ring road and establishment of two new entrances.

The project would deliver a cash yield of at least 8 per cent, GPT said.

“All our other David Jones stores are in the eastern and southern suburbs of Melbourne," David Jones chief executive
Paul Zahra
said.

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“The Highpoint region is currently serviced by only one department store [Myer], which means there is enormous potential for a new entrant such as David Jones."

In its full-year results DJs said it planned to open four “high value new stores" in fiscal 2013 and 2014.

Mark Fookes, GPT’s head of investment management, said: “With the introduction of David Jones, it’s just a further opportunity to . . . cater to the ‘new west’ that is not only fast-growing but really changing in its demographic," he said.

With a population of almost 960,000, the average household income in the Highpoint trading area is $66,733.